IIA IIA-CIA-PART3 Online Practice Questions and Exam Preparation

IIA IIA-CIA-PART3 Online Questions & Answers

• Question 761:

  Which basic force(s) drive(s) industry competition and the ultimate profit potential of the industry?

  A. Threat of new entrants II. Bargaining power of suppliers III. Favorable access to raw materials and labor IV. Product differentiation
  B. I only.
  C. I and II only.
  D. Ill and IV.
  E. I, II, III, and IV.
  B. I only.

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  Explanation

  Threat of new entrants and bargaining power of suppliers are among the five basic forces that drive industry competition and the ultimate profit potential in the industry. This potential is measured in terms of long-term return on invested capital. The other three forces are rivalry among existing firms, threat of substitutes, and threat of buyers' bargaining power.

• Question 762:

  Using the leadership grid developed by Robert Blake and Jane Mouton where each axis has a scale of 1 to 9, a primary style of 9,9 would indicate:

  A. Little concern for production or people (impoverished management).
  B. Moderate concern for production and people to maintain status quo (middle-of-the-road management).
  C. Great concern for production and people, trust, teamwork, and commitment (team management).
  D. Primary concern for production, little concern for people (authority-compliance management).
  C. Great concern for production and people, trust, teamwork, and commitment (team management).

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  Explanation

  A primary style that rates 9,9 on a scale of 1 to 9 indicates that it is at a maximum on both axes. Thus, there is great concern for production and great concern for people. This leadership style would emphasize output, cost control, and profit in addition to friendship, aiding employees, and addressing employee issues.

• Question 763:

  Which country is best described as having an individualistic culture?

  A. India.
  B. Japan.
  C. Canada.
  D. China.
  C. Canada.

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  Explanation

  Individualistic cultures are societies that place a higher value on the rights and accomplishments of individual persons within the society. Examples are the U.S., U.K,Canada, and Australia. Collectivist cultures focus much more on the goals of family, friends, country, and the organization. Examples are China, India, Mexico, Japan, and Egypt.

• Question 764:

  Two managers were discussing the merits of goal setting to improve employee performance. One manager felt that specific goals should not be established and that, to provide for flexibility, only generalized goals should be used. The other manager felt that specific, difficult goals produce the best results. As the discussion continued, other methods of goal setting were identified. Select the best method for setting goals.

  A. The manager should provide generalized goals.
  B. The manager should select specific, difficult goals.
  C. The employee should develop generalized goals and obtain management concurrence.
  D. The employee should develop specific, difficult goals and obtain management concurrence.
  D. The employee should develop specific, difficult goals and obtain management concurrence.

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  Explanation

  According to Edwin Locke's goal-setting theory, specific, difficult goals to which the employee is committed provide the best motivation tool. Performance improves when goals are specific rather than general, difficult rather than easy, and self- set rather than imposed by others. Feedback, especially self-generated feedback, also improves performance compared with lack of feedback. Commitment to goals, that is, a determination not to reduce or abandon them, and self-efficacy, that is, a belief in one's ability to accomplish the task, are additional qualities that result in better performance.

• Question 765:

  A small furniture-manufacturing firm with 100 employees is located in a two-story building and does not plan to expand. The furniture manufactured is not special-ordered or custom-made. The most likely structure for this organization would be:

  A. Functionaldepartmentalization.
  B. Productdepartmentalization.
  C. Matrix organization.
  D. Divisionalorganization.
  A. Functionaldepartmentalization.

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  Explanation

• Question 766:

  Which of me following statements is true regarding the reporting of tangible and intangible assets?

  A. For plant assets cost includes the purchase price and the cost of design and construction
  B. For intangible assets cost includes the purchase price and development costs
  C. Due to their indefinite nature intangible assets are not subject to amortization
  D. The organization must expense any cost incurred in developing a plant asset
  C. Due to their indefinite nature intangible assets are not subject to amortization

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  Explanation

• Question 767:

  Forward integration most likely results in:

  A. Product standardization.
  B. Reduced access to distribution channels.
  C. Obtaining less information about demand.
  D. Higher price realization.
  D. Higher price realization.

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  Explanation

  Forward integration may permit higher price realization, for example, by moving into businesses in which the price elasticity of demand is relatively high and lower prices must be set. When demand is elastic, raising prices decreases revenue. Thus, the firm may benefit by acquiring customers with highelasticitywhile selling to customers with lowelasticity.

• Question 768:

  Which of the following is generally considered a best practice related to data backup?

  1. Performing full system backups on weekdays.

  2. Storing system backups onsite in a secured location.

  3. Testing system backup media periodically.

  4. Verifying backup media can be retrieved within seven years.

  A. 2 only.
  B. 3 only.
  C. 1, 2, and 3 only.
  D. 2, 3, and 4 only.
  B. 3 only.

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  Explanation

• Question 769:

  A mature group lacks which of the following characteristics?

  A. Acceptance of individuals' differences.
  B. Members' awareness of individual roles in group processes.
  C. Attempts to compel unanimity.
  D. Acceptance of group authority and interpersonal relationships.
  C. Attempts to compel unanimity.

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  Explanation

  A mature group has rational discussion of decisions with tolerance of dissent and no attempt to force unanimity. Groups that are in their early stages attempt to force unanimity.

• Question 770:

  International marketing activities often begin with:

  A. Standardization.
  B. Global marketing.
  C. Limited exporting.
  D. Domesticmarketing.
  C. Limited exporting.

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  Explanation